Maharashtra Secures Significant Financial Support in Union Budget, Highlights Nitin Gadkari

Maharashtra is set to receive substantial financial backing from the Union Budget, with Rs 89,855.80 crore allocated for tax devolution, according to Nitin Gadkari, Union Minister for Road Transport and Highways. During a press conference in Nagpur, Gadkari highlighted the significant increase in financial assistance from the Centre to Maharashtra, emphasising its role in national infrastructure development.

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Gadkari stated that the Union Budget will accelerate India's development and generate employment opportunities. He noted that India's logistics costs have decreased significantly over time. The government aims to reduce these costs to below 10% of GDP through PPP reforms, increased private investment, green technologies, and faster project execution.

Infrastructure Development in Maharashtra

Gadkari mentioned that work on Nagpur Metro Phase 2 is nearing completion. For Phase 3, proposed corridors include Sitabuldi to Koradi (11.5 km), Butibori MIDC to Khapri, Nagpur Satellite City (3 km), and the Inner Ring Road (15 km). Approval has been granted for preparing Detailed Project Reports (DPRs), with work expected to start soon.

The minister also highlighted ongoing railway projects worth Rs 1.70 lakh crore in Maharashtra. A total of 41 new projects, spanning 5,877 km and costing Rs 81,580 crore, are currently underway. Under the Amrit Bharat Scheme, redevelopment work is ongoing at 128 railway stations in Maharashtra, including several in the Vidarbha region.

Financial Allocations and Economic Impact

The budget estimates for 2026-27 include a provision of Rs 89,855.80 crore for tax devolution to Maharashtra. In the previous budget estimates for 2025-26, Rs 50,511 crore was allocated as grants in aid to the state. Between 2014 and 2026, Maharashtra received Rs 5.83 lakh crore through tax devolution and Rs 3.66 lakh crore as grants.

Gadkari expressed confidence that sustained investment in connectivity and logistics efficiency would yield long-term economic benefits for both Maharashtra and India. He cited a study by IIM Bengaluru, IIT Madras, and IIT Kanpur showing infrastructure-led reforms have reduced logistics costs by 5-6 percentage points, bringing them closer to the 9-10% range.

Union Budget's Role in Economic Growth

The Union Budget's capital expenditure of Rs 12.20 lakh crore focuses on roads, railways, and shipping to boost economic growth and competitiveness while generating employment. The proposed Infrastructure Risk Guarantee Fund aims to strengthen Build-Operate-Transfer (BOT) and PPP models by enhancing investor confidence.

Gadkari noted that developed economies operate with logistics costs of 8% to 9% of their GDP. In China, it is nearly 8%, while European countries have about 12%. India's logistics costs previously stood at 14%-16% of GDP but have been steadily declining.

The minister concluded by stating that the Centre wants to bring logistics costs down to single digits. This reduction aligns with global standards and supports India's economic growth objectives.

With inputs from PTI